If you had a chance to read our article on listing agents, you may already know the benefits a professional and reliable listing agent brings to real estate investors. Today, to boost your knowledge for the new year, we prepared an article on what you, as a real estate investor, should know about buyer’s agents and why these people can really save the day.
They have expertise in navigating the local market
Buyer’s agents have in-depth knowledge of the local real estate market, including trends, pricing, and neighborhoods. They can identify opportunities that align with your needs and budget while steering you clear of properties that may have hidden risks or are overpriced.
However, overpricing and the poor quality of construction are not the only risks real estate investors might face. The real estate market hides many pitfalls. Let’s review some real-life examples of primary residences, long-term, and short-term rental investment properties.
Long-term rent
On a listing website, you find a great deal – large apartments in a newly built neighborhood remote from the CBD. The apartment looks beautiful, comes at a great price, and the roads and transport infrastructure are expected to grow. However, what you might not know is that the building is already known for its crime rates and police reports. It’s definitely not what your tenants and their families need, and a decreased rental price, much lower than you originally expected, will be the least of your worries.
Most often, good real estate agents know such insider information about distressed and problematic buildings, even if the whole neighborhood seems fine. If not, they will do their due diligence in advance to find out. Of course, you can also do your research if you purchase without a real estate agent, but not always will you find this information, and not always will you even think to check exactly this information.
Short-term rent
You find a great deal to purchase a short-term rental property, and the main feature you’re planning to use to attract tenants is a great view from the balcony combined with a calm environment. However, the land in front of your building was sold several months ago, and the construction of a new high-rise building will start in the coming years. This means no more views and no more calmness for your guests.
Buyer’s agents often have insight into such future developments and can advise you accordingly, ensuring you don’t make a costly investment mistake.
Primary residence
You are tired of living in the heart of the city and searching for a parking space every time you come back after work. You find a small condo in an old neighborhood with a huge parking lot just a few steps from your condo. The thing is, the parking lot might already be sold and getting ready to be dismantled and replaced with an office building, bringing more cars to the neighborhood, and negating the very reason you wanted to move.
Just as with the previous example, your real estate agent might be aware of such information and will warn you.
All the above examples show how your real estate agent might save you from costly mistakes.
They have access to off-market listings
Not all homes for sale are listed publicly. Buyer’s agents often have access to off-market properties or exclusive listings through their professional networks, giving you an edge in finding your investment property.
They guide you through the buying process
The home-buying process involves many steps, including property viewings, making offers, inspections, and closing — not to mention specific transactions like exchanging investment properties. A buyer’s agent guides you through each stage, ensuring nothing is overlooked and you meet deadlines to avoid costly delays.
When significant money is at stake, understanding that everything is under strict control and the entire transaction is in safe hands and goes smoothly will provide you with peace of mind and probably save you time, money, and nerves.
They have a network of professionals
Just like listing agents, a good buyer’s agent can connect you with reliable professionals, such as trusted mortgage brokers or lenders, and help you understand the best financing options for your situation. They can also help identify government programs or incentives that may apply to you, especially if you're a first-time buyer or real estate investor.
They make professional negotiations
Negotiating the purchase price and terms of the transaction can be challenging. An experienced agent will negotiate on your behalf to ensure you get the best deal possible while protecting your interests. The negotiations are not only about haggling over the selling price but also about seller concessions, contingencies, and more.
Buyer’s Agent: Conclusion
Working with a buyer’s agent can save you time, money, and stress while helping you avoid costly mistakes. At NOVA, we collaborate with multiple experienced real estate professionals who guide us through local markets, enabling us to deliver the best opportunities for our tokenized property investors.
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